YORKSHIRE manufacturing firms are showing signs of resilience, it is claimed.

Latest official figures show that 102 manufacturing firms entered administration nationally in the first quarter of 2012, down by 17 on the same period in 2010.

Business advisory firm Deloitte said the action taken by firms since the recession has made them better equipped to cope with future shocks.

The improvement in the administration figures comes despite the latest Government statistics showing manufacturing output fell by 0.9% in March, 2012, compared with the year before.

But even before the economy returned to negative growth, manufacturers across Yorkshire – who employ 260,000 people – had been taking steps to preserve cash, manage costs and streamline their business in order to survive the prolonged period of weak demand in the wider economy.

Ongoing uncertainty in the eurozone which accounts for more than £6bn of exports from Yorkshire, together with weak demand at home and a rise in energy and raw material costs have forced manufacturers to take defensive steps to protect their business, Deloitte said – by ending production of less profitable or loss-making lines in order to focus on higher margin products in order to survive.

Simon Manning, manufacturing partner at Deloitte in Yorkshire, said: “Manufacturing firms across Yorkshire have been faced with many hard decisions over recent years but in the absence of strong growth in the wider economy they have had little option other than to cut costs.

“The latest manufacturing administration figures show the steps taken by the sector have made it better-placed to survive a downturn in the economy.

“Although conditions are unlikely to improve in the near future these streamlined firms will be well placed to take advantage of the upturn when demand returns.”